Retained Earnings Consist of a Pool of Funds to Be

question 172

True/False

Retained earnings consist of a pool of funds to be distributed to stockholders.

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Definitions:

Withdrawal

The act of taking money out of an account, or the removal of funds from a partnership by a partner for personal use.

Revenues

The full extent of revenue garnered from the commercial activities that are at the core of a company’s operational agenda, particularly through goods or services.

Assets

Resources owned by a company that have economic value and can be used to meet its future obligations.

Liabilities

are legal financial debts or obligations that arise during the course of business operations.